Who is responsible for any Federal Tax Liens against a property that I purchase in the auction?
More and more municipalities are making proper notification to the Internal Revenue Service (IRS) regarding Federal Tax Liens against tax foreclosed properties. In those cases the IRS has up to 120 days after the auction to purchase the property from the successful auction purchaser for the amount purchased, commission and any closing fees. For auction parcels that have Federal Tax Liens against them and the proper notification has not been made, the successful purchaser can either negotiate a lien release or wait until the lien expires. What happens if an improved property that I purchase is damaged between the date of the auction and the time that I close on the property? Answer: Municipalities will generally work with a successful purchaser if it can be proven that the damage occurred between the date of the auction and the date of closing. If the property had been occupied and no inspection was made prior to the auction, then it may be difficult to determine when the damage was don
